A Government petition to reduce fuel duty and ease cost of living is gathering support

A Government petition to reduce fuel duty and ease cost of living is gathering support
An official petition to the UK Government, calling on them to reduce the tax rate on fuel and VAT for a two-year period is heading towards 100,000 signatures.

Although the campaign was launched last year, it has gathered momentum in recent weeks due to the impact the Russian invasion of Ukraine has had on the price of fuel.

The deadline for the petition is 18 April, and should it reach its target number of signatures, it will have to be debated in Parliament.

According to the petition: “The Government should reduce the cost of fuel through a reduction of 40% in fuel duty and VAT for 2 years. This can effectively offset the rise in fuel prices since 2020.

“We believe people may understand to a degree the need for tax following the pandemic however prices of £1.50 or more per litre will cancel out any understanding. The Government has the ability to sacrifice some revenue to appease the British public.”

With drivers across the country dealing with the impact of soaring fuel prices due to President Putin’s invasion of Ukraine – and with the Government announcing sanctions to phase out Russian fuel imports – record-breaking price rises have continued this week.

The Government initially responded to the petition in November 2021. The statement read: “Whilst the rationale of this petition is appreciated, any reform to the current VAT treatment of road fuel would carry a significant cost to the Exchequer, and this should also be seen in the context of the over £50 billion of requests for reliefs from VAT received since the EU referendum.

“Such costs would have to be balanced by increased taxes elsewhere, increased borrowing or reductions in Government spending. Given this, there are no current plans to change the current VAT treatment of road fuel.”

RAC fuel spokesman Simon Williams said: “Prices at the pumps have been breaking records on a daily basis and to make matters worse the price increases have been seriously steep recently. We believe the Chancellor must take immediate action by cutting VAT on fuel to at least 15% to give drivers some instant respite and to protect them from future increases. The Chancellor could also temporarily reduce fuel duty, which is currently levied at 58p per litre, reducing this would help both businesses and consumers.”

Currently, the petition is approaching 70,000 signatures – this number having risen considerably in recent weeks.

The RAC would welcome further discussion in Parliament to alleviate costs for drivers at the pumps.

You can keep up to date with the most recent petrol and diesel prices on RAC Fuel Watch. Find out how you can save some money with these fuel saving tips as well.